Answer:
Daisy King Ice Cream Company
General Journal
1. Debit Cash Account $23,000
Credit Capital Stock $23,000
To record the issue of 10,000 shares for cash.
2. No journal entry required.
3. Debit Prepaid Rent $3,180
Credit Cash Account $3,180
To record the payment in advance of six months' rent.
4. Debit Equipment $5,700
Credit Cash $2,000
Credit Notes Payable $3,700
To record the purchase of equipment for cash and 10% two-year notes.
5. Debit Supplies $2,100
Credit Accounts Payable $2,1000
To record the purchase of supplies on account.
6. Debit Cash Account $1,100
Credit Sales Revenue $1,100
To record the sale of goods for cash.
Debit Royalties Expense $55
Credit Royalties Payable $55
To record 5% royalties payable on sales.
7. Debit Salaries and Wages Expense $470
Credit Cash Account $470
To record the payment of weekly salaries and wages.
8. Debit Accounts Payable $2,100
Credit Cash Account $2,100
To record the payment for supplies purchase on account.
9. Debit Royalties Payable $55
Credit Cash Account $55
To record the payment of royalties due.
10. Debit Depreciation Expense $70
Credit Accumulated Depreciation $70
To record the depreciation expense for the period.
Explanation:
For Daisy King Ice Cream Company, the recording of business transactions in the journal is the first step of maintaining the double-entry system of book-keeping. In it, the accounts to be debited and credited are identified and recorded for onward posting to the general ledger.
